Authored by Goldbroker.com's Helder Mello Guimares via Acting-Man.com,
Chugging along in Nosebleed Territory
Last Friday, both the S&P 500 and the Nasdaq composite indexes closed at record highs in the US, with the Dow Jones Industrial Average only a whisker away from its peak set in March. What has often been called the “most hated bull market in history” thus far continues to chug along in defiance of its detractors.
Is today's the day someone - following the suddenly resurgent VIX - finally blows up? Here are some timely thoughts from RBC's head of cross-asset correlation Charlie McElligott.
* * *
Why Energy Teams Are Getting Blown Out
The overnight chaos is accelerating as we head into the US equity open...
Treasury safe-haven buying is picking up...
VIX tops 12.00 as Dow Futures are accelerating to the downside...
Yen is also bid... back below 112.00
And the Dollar is being dumped...
Dropping as Trump impeachment odds surge...
Erasing all of the post-election gains...
A risk-off mood dominated the overnight session amid growing concern over the turmoil engulfing the Trump administration, as fresh allegations add to deepening political scandals in Washington, the latest coming from Tuesday's NYT report citing former FBI director Comey’s memo which raises possibility of obstruction of justice, an impeachable offense. The dollar, already in retreat after a report that the U.S.
From "Blain’s Morning Porridge - May 17" by Bill Blain of Mint Partners
* * *
Talking to accounts yesterday I was struck by a sense of resignation: stocks seem determined to go stratospheric despite the fact many people think a correction/reset is coming. Bond spreads are at all time tights – and everyone seems to be chasing them down. Investors are frustrated they aren’t catching the returns, and its human nature to find reasons to talk these gains down.